Paying exempts when facility is closed

Kizzie

Our New York office is located near where the Republican National Convention will be held. There will be problems with transportation, crowds, etc. so we are considering closing the office for the week of August 30 - September 3. As well, the employees are nervous due to the possibility of terrorist attacks. If the salaried employees do not work any part of this week, can they take either vacation (for part or all of the week as long as they have vacation available) or be unpaid for the entire week. The federal regulations state that a salaried employee need not be paid for any workweek in which he performs no work. However, the regs also state that "an employee will not be considered to be on a salary basis if deductions from his predetermined compensation are made for absences occasioned by the employer or by the operating requirements of the business. Accordingly, if the employee is ready, willing, and able to work, deductions may not be made for time when work is not available." I read this to mean that the company can close the facility and not pay the salaried employees if it is for a workweek but if less than a workweek, they must be paid.

Can anyone give me further insight as to what we can and cannot do?

Thanks!

hhaynal

My interpretation of the regs is the same as you have enunciated. But since I have never come up against this issue before, not sure of the correct answer to your query.

Down_the_Middle

Many employers have a policy that requires employees to use unused, accrued paid time off (whatever you may call it) and thus, your exempt staff would have their pay continued for those full day absences. In the absence of such a policy you might consider having the exempt staff prepare for their absence by developing work folders in advance. They would be expected to do some of their work at home, etc..... and be paid for the time. I don't personally get that excited about paying exempts for this type of time off and I suspect your entire region is struggling with this dilemma. Good luck. We're praying that the "anxiety" is uneventful..........

Rockie

If an exempt level employee does not perform any work during the work week, they do not have to be paid. If, however, they have accrued PTO, I would give them this option.

Best of luck!

Kizzie

Thank you for your input. The majority of our employees have sufficient PTO to cover this week; however, some feel that they should not be required to use this time. Other people have indicated that since it is the Company's decision to close the facility, they should not be penalized although many people have indicated that they would be too nervous to come to work during this period.

We have told people that they have the option of using PTO or taking the time unpaid.

Don D

I suggest your company not look at could you or should you, but can you? If the company is cash strapped I would find a way to wiggle out of paying them, realizing it will have terribly negative fallout. If the company is viable and making a decent profit, I'd pay them right along. they don't need the extra stress of a week without pay or burning all their vacation. Resumes will go out like lightbulbs.